Walman Corp.manufactures products X,Y,and Z from a joint process.Joint costs are allocated on the basis of relative sales value at the split-off point.Additional information is as follows:
Product X's sales value at split-off is:

Question

Walman Corp.manufactures products X,Y,and Z from a joint process.Joint costs are allocated on the basis of relative sales value at the split-off point.Additional information is as follows: 
Product X's sales value at split-off is:

Quizplus · Accepted Answer

The total sales values for all three products can be found by adding up their respective sales values at split-off: 
Product X = $306,000 
Product Y = $85,000 
Product Z = $135,000 
Total sales value = $526,000

To find the percentage allocation for Product X, divide its sales value by the total sales value: 
$306,000 / $526,000 = 0.581

Therefore, 58.1% of the joint costs should be allocated to Product X. The choice that corresponds to this percentage is C).